Federal Judge Closes Receivership in Petters’ Ponzi Scheme
MINNEAPOLIS -- A federal judge has closed the Tom Petters receivership nearly 13 years after freezing the assets of the Ponzi scheme orchestrator.
Petters, a St. Cloud-native, was indicted in 2008 on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy.
The $1.9-billion Ponzi scheme is considered one of the nation's largest and most complex Ponzi schemes on record.
In 2009, a federal jury found Petters guilty of all 20 counts against him. He was sentenced to 50-years in federal prison.
The U.S. Attorney's Office says Petters created a vast web of more than 150 entities propped up by fraud. The Receiver, Douglas Kelley, placed several major companies into bankruptcy including Sun Country Airlines and Polaroid to protect innocent employees and creditors.
In all, more than $722-million was recovered and distributed to victims and creditors.
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